The cycle of foreign exchange inflows and outflows continues as the central bank paid off large debts on behalf of the country and received loans from various banks at the same time.
The State Bank of Pakistan made payments of $809 million for debt servicing to various banks and countries during the week ended 26-June-2020.
At the same time, SBP received around $2,046 million official inflows, including $737 million from World Bank, $503 million from Asian Development Bank, $500 million from Asian Infrastructure Investment Bank, and $300 million as GOP loan disbursement from China.
The fresh outflows and inflows of foreign exchange settled its position at $17.971 billion on 26-June-2020 with SBP’s reserves at $11.231 billion and commercial banks holding $6.740 billion.
In the next few days after June 26th, SBP also received an additional $1 billion as GOP loan disbursement from China, increasing the reserves to $18.97 billion.
Due to the heavy inflow of loans, the position of the Rupee against Dollar saw improvement in recent days and is likely to be stable in the next few weeks.